Zimbabwe mining

Zimbabwe is increasingly pinning its hopes on its mining industry to beef up the government coffers. The government is keen to tap into the sector’s huge potential – it holds the second largest platinum reserves globally and its diamond fields are also reportedly ranked among the top five diamond reserves in the world.

But mining needs support to get over the constraints of high production costs, excessive fees, and falling commodity prices. So the government is planning to issue it’s first bond aimed at financing the mining sector. Will it be able to convince investors to participate? 

Ever since the Zimbabwe government published its plans to localise majority ownership of the country’s mines, mixed messages have dominated the debate over investment and growth.

Last week was no different, with the finance minster, Tendai Biti, and miner Amplats making positive noises about investment which seem rather optimistic, to put it mildly.